Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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Optimism ($OP):

Overview

Optimism ($OP) has experienced a significant drawdown recently, breaking below its critical monthly demand zone. This zone, marked between $1.46 and $1.15, was expected to provide solid support. However, the price slipped through this area, leading to a sharp liquidation event down to $0.79.

The weekly timeframe shows a rapid rebound from the July 2023 lows at $0.955, indicating a swift recovery. This suggests a shakeout of weak hands and liquidations.

Analysis & key levels

• Support levels:
  • $0.955 (July 2023 Low): Price quickly liquidated this level, indicating a potential bottom.
  • $0.79: A significant low from which OP reversed sharply.
  • $1.15: The lower boundary of the monthly demand zone; crucial for sustained recovery.
• Resistance levels:
  • $1.46: The upper boundary of the monthly demand zone; key level for price to reclaim.
  • $1.827: An important weekly resistance level, pivotal for a medium-term trend shift.
  • $2.315: A higher resistance.

Potential scenarios

1. Bullish scenario:
   • If OP reclaims the $1.15 - $1.46 demand zone and consolidates within it, this could signal a bottoming process.
   • A break above $1.827 would confirm strength, targeting $2.315 next.
2. Bearish scenario:
   • Failure to hold above $1.15 could lead to a retest of the recent low of around $0.79, potentially forming a double bottom.

Cryptonary's take

The recent liquidation event in OP suggests a washout of weak hands, followed by a swift recovery. While the break below the monthly demand zone was concerning, the rapid reclaim of the July 2023 lows hints at possible accumulation at lower levels.

For now, it's crucial for Optimism to chop within the demand zone and reclaim $1.827 to reestablish bullish momentum. This consolidation phase will set the stage for a stronger move, either confirming a bottom or indicating further downside risk. As always, patience is key to the critical levels and waiting for clear signals before taking action.

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SUI:

Market context

SUI is an asset that’s really trying to regain its bullish structure. We got that key level of $3.5 back. We actually anticipated SUI to potentially come back down to $2.6–$2.4, which it still could do. But SUI is a very strong token—it’s got a lot of buying pressure and a lot of buying volume.

Even the wick that was formed on Monday, February 3rd, was an aggressive buyback. When the price tapped into $2.6–$2.4, buyers stepped in hard, pushing it back up. Now, we’re back above $3.5, which is really predominant bullish structure.

The ultimate bullish structure—the thing that would make this really, really bullish—would be reclaiming $4. That would put it back in a strong bullish framework.

Playbook

• Spot accumulation: While we’re trading below $4, SUI could come lower, but this isn’t an asset you look too short. It’s too strong, too much density, too much buying pressure. Even on the downside, buyers have stepped in repeatedly.
• Optimal approach: The way to play SUI is simple—let the market come to you. Look to accumulate based on how it’s performed over the past year and how it’s likely to perform going forward.

Key levels

• $3.5 → Key level reclaimed, bullish structure holding.
• $2.6–$2.4 → Still possible, but buying pressure is strong.
• $4 → The key level to reclaim for full bullish momentum.

Cryptonary's take

SUI remains one of the stronger assets in the market, consistently attracting buyers at key levels. The aggressive buyback from $2.6–$2.4 reinforces the strength of demand, and while there is potential for a retest, the key takeaway is that sellers are struggling to maintain control. The reclaim of $3.5 is an early signal of strength, but a move above $4 would be the ultimate confirmation of bullish intent. This isn’t an asset to fade—the play here is patience and calculated accumulation, not shorts.